Regent suffers as more patrons go walkabout

Regent Inns, the struggling pub and comedy club operator, has seen sales at its entertainment bars division slump by almost 11% so far this year as its Walkabout chain continued to be hit hard by increased competition, rising costs and the smoking ban.

Regent has already cancelled dividend payments, cut capital expenditure and in March sold and leased back seven freehold properties. These steps shaved £1.6m off the £79m net debt, which is still more than four times its market capitalisation.

Comparable sales at Regent's core entertainment division fell 3.8% before Christmas but yesterday Bob Ivell, the executive chairman, said this trend had worsened markedly, with like-for-like sales down 10.9%. The figure would have been worse were it not for a "robust" performance from the 12 Jongleurs comedy clubs.

Regent has seen its shares collapse by almost 90% in the last year. It said it was still talking to potential bidders, which are believed to be Sun Capital, the buyout group led by Punch Taverns' founder Hugh Osmond, and the privately owned nightclub group Brooks Leisure. Alchemy Partners is no longer involved in talks.

Four pubs a day are closing in Britain, according to the British Beer & Pub Association. Among the worst hit are late-night high-street bars on leases. Casualties include Laurel Pub Company, CanDu, Massive Pub Company, Soho Clubs & Bars and Sports Cafe.

With no home nation in the Euro 2008 football tournament next month, investors are hoping that the sports-focused Regent will benefit from a summer free from last year's exceptional downpours.